Rbi rate decision, auto sales and earnings likely to influence the market

An RBI decision on policy rates, a slew of blue-chip corporate earnings data and auto sales will take center stage on Dalal Street in the week beginning August 1. State Bank of India (SBI), ITC, Mahindra & Mahindra, Titan GAIL, IndiGo, Britannia and Godrej Properties will release their quarterly figures during the week.

The move in the forex market will remain on investors’ radar after the rupee posted its biggest gain in a year to settle at 79.25 on Friday.

The week that was

India’s benchmark Sensex and Nifty stocks jumped nearly 3% last week – a second consecutive weekly gain. Globally, an expected rate hike in the US and dovish comments from the Fed sent positive signals to equity markets.

Information technology financial and metal stocks were the main drivers of the major indexes.

A total of 38 stocks in the Nifty50 basket posted weekly gains.

Bajaj Finance, Bajaj Finserv, SBI Life, IndusInd and Asian Paints were also among the top winners.

Broader markets also strengthened for the week.

Index Weekly change (%)
Clever Midcap 100 2
Clever small cap 100 0.5

The road ahead

Analysts see the next target for the Nifty50 at 17,400, after the bulls broke decisively past it at 16,800.

“All sectors are contributing to the movement. We believe that the focus should always be on the top performers rather than expecting a turnaround from the beaten names. We reaffirm our preference for automotive, FMCG, banking and finance and remain selective in other sectors,” said Ajit Mishra, Vice President of Research at Religare Broking.

Participants can look for buying opportunities on dips, he said.

Here are the main factors and events likely to influence Dalal Street during the week starting August 1st:

DOMESTIC INDICES

business profits

Date Company
August 1 ITC, Zomato, UPL, Thyrocare, Escorts, Barbeque-Nation, TBZ
August 2nd Bosch, Adani Green, Deepak Nitrite, Godrej Properties, Brigade Enterprises, Indus Towers, Lemontree, Voltas
August 3 Adani Power, Adani Transmission, InterGlobe Aviation, Lupin, Vodafone Idea, Tata Coffee, Godrej Consumer Products, Inox Leisure, Birlasoft, Devyani International, Bliss GVS Pharma
August 4 GAIL, Adani Enterprises, Adani Total, BHEL, Britannia, Dabur, Berger Paints, BEML, Dalmia Bharat, Kalpatru Power, Spandana Sphoorty, Ujjivan Financial Services, HCC, Krsnaa, LIC Housing Finance, Manappuram, Max India
5 August Mahindra & Mahindra, NMDC, Nykaa, Paytm, Titan, Uco Bank, Indigo Paints, CAMS, Fortis Healthcare
August 6 SBI, Marico, Amara Raja, Overseas Indian Bank

Automotive sales

Automakers will start releasing their monthly sales figures on Monday.

IFI activity

The flow of money from institutional investors will remain concentrated on Dalal Street.

GLOBAL INDICES

Date WE Europe Asia
August 1 Manufacturing PMI data Retail sales in Germany, manufacturing PMI in France, unemployment data in the eurozone GDP data from Hong Kong, manufacturing PMI data from China and Japan
August 2nd Fed official Charles Evans will speak Hong Kong Retail Sales Data
August 3 Crude Oil Inventory Data France and Eurozone services PMI data, Eurozone retail sales data China and Japan services PMI data
August 4 Unemployment claims data, Fed Loretta Mester to speak ECB Executive Board Member Frank Elderson will speak
5 August Unemployment rate data Data on industrial production in Germany and France

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